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Newfield Exploration Co. Message Board

  • PXP was recently sold for $6.9 billion. NFX is currently trading at $3.3 billion.

    Here is the comparison (2011 figures):
    PXP - NFX
    Oil Reserves: 244 million barrels - 263 million
    Gas Reserves: 1 tcf - 2.3 tcf
    Oil production: 17.8 million barrels - 19.65 million
    Gas production: 111.5 bcf - 175.2 bcf
    Equity: $3.2 billion - $3.9 billion
    Debt: $3.7 billion - $3 billion
    Net income: $206 million - $539 million

    NFX is currently trading for about 2.2 times cash flow. At the current price, they can retire 30% of the stock if they can put about $1 billion of capital spending on hold for a year. If they do this for 2-3 years and the only outstanding shares are the ones I hold, I can become a billionaire in 3 years.

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    • I think you are on to something here!!

      Not only is every number you point out true, but more importantly, NFX holds valuable shale oil fields in the Bakken, Eagle Ford, Granite Wash, Unita and Cana Woodford. These are the best shale plays in the world.

      PXP is largely GOM, which I believe is not as attractive give all the risks and unpredictably of producing oil.

      NFX could also sell its Bakken leases or Malaysia fields generate a couple of Billion dollars and buy back half the stock or more.

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